Fundamental News and Triggers
Silver skyrockets to the Rs 2 lakh level
- Gold and silver skyrocket even though the Fed has turned dovish and hinted at a lower rate reduction in 2026. Positive events related to the Ukraine peace deal may limit the bullion price’s upside.
- The Federal Reserve dropped interest rates for the third time in a row on Wednesday, and officials hinted at a possible pause in additional cuts as they examine labour market conditions and inflation, which “remains somewhat elevated”.
- Chair Powell stated that future rate hikes are virtually out of the question, forcing markets to price in two cuts in 2026, despite the Fed’s projections of only one.
- At the same time, the Fed said that it will buy approximately $40 billion in short-term Treasury bills to relieve money market stress, a move that is likely to contain short-term yields and bolster precious metals.
Technical Triggers
- Gold has touched the upper side of the range of $4300. We can see some profit booking, selling on rallies.
- Silver has seen a very sharp run-up in prices. We can see profit booking at these levels. Prices are expected to correct to Rs 195,000 and Rs 190,000 soon
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